AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 18/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · The substantial installed infrastructure, approved cost-based service and realized investment-linked transmission revenues demonstrate an incumbent economic advantage. Exclusive franchise protection is not disclosed.
durability · 2/4 · Operating recovery mechanisms and approved abandonment protection support continuity, while aging assets and an actual regulatory investment delay demonstrate continuing reinvestment and approval dependence.
customer dependency · 2/4 · Recurring distribution deliveries and provision of regulated electric service support ongoing customer dependence indirectly. Weather-adjusted deliveries declined slightly, and the passages do not establish customer switching barriers or exclusive delivery rights.
erosion resilience · 2/4 · Actual storm-cost deferrals and approved abandonment protection cushion shocks. Revenue caps, investment deferrals and pending transmission-planning challenges constrain resilience without establishing realized moat failure.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Higher generation auction rates and transmission recovery revenues demonstrate realized pricing outcomes. Much generation revenue has no material earnings impact, and transmission gains combine expense recovery, true-ups and rate-base growth rather than unrestricted price increases.
retention · 2/4 · Repeat electricity demand is assessed indirectly from continuing deliveries: actual JCP&L deliveries rose 2.1%, while weather-adjusted deliveries fell 0.5%. This supports recurring use, but does not measure retention following price changes; generation supplier choice remains available.
margin resilience · 3/4 · Disclosed cost recovery and actual storm-cost deferrals demonstrate strong protection of current earnings from specified cost shocks. Recovery timing, financing costs and eventual regulatory collection remain material limitations.
contractual freedom · 1/4 · Rates require regulatory approval, the Ohio investment rider has an explicit revenue cap, and generation procurement costs pass directly to customers. These arrangements offer recovery protection with limited discretionary pricing freedom.
Predictability75
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 4.07
- Positive FCF years (%)
- 20.00
- FCF margin volatility (pp)
- 6.44
Financial strength2
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 0.00
- netDebtEbitGrade
- 0.00
- interestCoverageGrade
- 7.39
- currentRatioGrade
- 0.00
- Net debt / operating income (x)
- 12.01
- Interest coverage (x)
- 1.81
- Current ratio (x)
- 0.57
Capital allocation—
Missing required inputs: sbcRevenue. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 6.27
- 3-year average dilution (%)
- 0.35
- cashConversionGrade
- 0.00
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Completed pension-risk transfers and a noncore asset sale demonstrate concrete portfolio actions. Reported capital deployment is substantial, but rising debt and short-term borrowings accompany further investment commitments; supplied cash-flow and return evidence cannot establish superior allocation.
incentive alignment · 2/4 · The completed LTIP cycle paid 81% of target based on EPS and relative TSR outcomes, demonstrating performance-sensitive compensation. An approved mid-cycle metric change complicates comparability, although the EPS payout was capped. Executive ownership amounts are unavailable.
execution · 3/4 · Reported completed investment and a 10% reliability improvement, together with JCP&L's disclosed earnings improvement and investment-related transmission revenues, support strong recent execution. Results include regulatory true-ups and absence of prior severance costs; reliability is issuer-reported and long-term project returns remain unproven.
governance · 2/4 · Independent committees, shareholder rights and actual independent executive sessions provide concrete oversight evidence. Combined chair/CEO roles and continuing disclosures tied to a deferred prosecution agreement warrant a mixed assessment; neither establishes current misconduct or exceptional governance effectiveness.
Evidence
1 FIRSTENERGY CORP. CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except share amounts) June 30, 2026 December 31, 2025 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 63 $ 57 Restricted cash 128 42 Receivables - Customers 1,715 1,783 Less — Allowance for uncollectible customer receivables 48 57 1,667 1,726 Other, net of allowance for uncollectible accounts of $11 in 2026 and 2025 343 295 Materials and supplies, at average cost 559 577 Prepaid taxes and other 445 282 3,205 2,979 PROPERTY, PLANT AND EQUIPMENT: In service 57,968 56,213 Less — Accumulated provision for depreciation 15,606 15,189 42,362 41,024 Construction work in progress 3,925 3,389 46,287 44,413 INVESTMENTS AND OTHER NONCURRENT ASSETS: Goodwill 5,618 5,618 Investments 635 641 Regulatory assets 1,357 829 Other 1,119 1,424 8,729 8,512 TOTAL ASSETS(1) $ 58,221 $ 55,904 LIABILITIES AND EQUITY CURRENT LIABILITIES: Currently payable long-term debt $ 505 $ 723 Short-term borrowings 1,376 325 Accounts payable 2,122 2,002 Accrued interest 388 373 Accrued taxes 738 768 Accrued compensation and benefits 256 286 Dividends payable — 257 Customer deposits 256 250 Other 287 287 5,928 5,271 NONCURRENT LIABILITIES: Long-term debt and other long-term obligations 27,102 25,508 Accumulated deferred income taxes 6,314 6,032 Retirement benefits 1,464 1,469 Regulatory liabilities 891 1,185 Other 2,096 2,513 37,867 36,707 TOTAL LIABILITIES(1) 43,795 41,978 EQUITY: Common stockholders’ equity- Common stock, $0.10 par value, authorized 700,000,000 shares - 578,639,932 and 577,851,052 shares outstanding as of June 30, 2026, and December 31, 2025, respectively.
Consolidated balance sheets: installed assets, construction, liquidity and debt · Filed 28/07/2026
WEST VIRGINIA MP and PE provide electric service to all customers through traditional cost-based, regulated utility ratemaking and operate under WVPSC-approved rates that became effective March 27, 2024, and, for applicable customers, a WVPSC-approved solar surcharge that was most recently adjusted effective January 15, 2026.
West Virginia regulatory matters: approved cost-based rates and solar surcharge · Filed 28/07/2026
MP and PE recover net power supply costs, including fuel costs, purchased power costs and related expenses, net of related market sales revenue through the ENEC.
West Virginia regulatory matters: net power supply cost recovery · Filed 28/07/2026
Transmission revenues increased $38 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to higher recovery of transmission operating expenses, true-up adjustments from the annual forward-looking transmission rate filing and higher rate base from regulated investment programs.
Integrated segment results: realized transmission revenue drivers · Filed 28/07/2026
Distribution services by customer class are summarized in the following table: For the Six Months Ended June 30, (In thousands) Actual Weather-Adjusted Electric Distribution MWh Deliveries 2026 2025 Increase (Decrease) 2026 2025 (Decrease) Residential 4,662 4,523 3.1 % 4,372 4,419 (1.1) % Commercial(1) 4,126 4,066 1.5 % 4,059 4,058 — % Industrial 857 862 (0.6) % 857 862 (0.6) % Total Electric Distribution MWh Deliveries 9,645 9,451 2.1 % 9,288 9,339 (0.5) % (1) Includes street lighting.
JCP&L operating results: actual and weather-adjusted distribution deliveries · Filed 28/07/2026
Effective September 10, 2025, ATSI and PE each became eligible to recover 50% of the project costs incurred prior to September 10, 2025, and 100% of the project costs incurred thereafter for any projects subsequently cancelled for reasons beyond the control of utility management.
Transmission regulatory matters: approved abandonment cost-recovery eligibility · Filed 28/07/2026
ESP IV, as modified, continues the DCR rider, which supports continued investment related to the distribution system for the benefit of customers, with an annual revenue cap of $390 million.
Ohio regulatory matters: distribution investment rider and annual revenue cap · Filed 28/07/2026
In August 2025, the NJBPU directed JCP&L to defer certain transmission investments for approximately 2.5 years and directed JCP&L to work with NJBPU staff and PJM to ensure alignment as to the work that is to be continued on the original timeline and the work that is to be delayed consistent with the order.
New Jersey regulatory matters: directed transmission investment deferral · Filed 28/07/2026
FirstEnergy is unable to predict the outcome or estimate the impact that this complaint may have on its Transmission Companies, however, whether this lawsuit moves forward could have a material impact on FirstEnergy and its transmission capital investment strategy.
Transmission planning complaint: uncertain impact on capital investment strategy · Filed 28/07/2026
Ghiorzi v. PJM In December 2023, PJM assigned certain baseline RTEP projects to NextEra Energy Transmission, which subsequently informed PJM that it would not construct the projects.
Transmission project allocation: named alternative project developer · Filed 28/07/2026
On April 3, 2025, following the reassignment by PJM of certain baseline RTEP projects in Maryland and Virginia to PE, two individuals filed a complaint at FERC challenging this outcome, which FERC denied on February 2, 2026.
Transmission project allocation: reassignment to PE and complaint denial · Filed 28/07/2026
Across our footprint, nearly 70% of our lines and 30% of our substation assets will approach end‑of‑life over the next decade.
Shareholder letter: approaching end-of-life transmission assets · Filed 01/04/2026
FirstEnergy’s Energize365 business plan calls for extensive capital investments totaling approximately $36 billion from 2026 through 2030.
Capital investment risk factors: 2026–2030 investment plan · Filed 18/02/2026
All New Jersey EDCs participate in this competitive BGS procurement process and recover BGS costs directly from customers as a charge separate from base rates.
New Jersey regulatory matters: competitive generation procurement and direct cost recovery · Filed 28/07/2026
54 Generation sales revenues increased $102 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to: •Retail generation sales increased $55 million in the second quarter of 2026, as compared to the same period in 2025, primarily due to higher non-shopping generation auction rates and higher volumes as a result of the weather temperatures.
Integrated segment results: higher retail generation auction rates and weather-related volumes · Filed 28/07/2026
Retail generation sales, other than those in West Virginia, have no material impact to earnings.
Integrated segment results: limited earnings impact of retail generation sales · Filed 28/07/2026
•Other operating expenses increased $136 million in the first six months of 2026, as compared to the same period of 2025, primarily due to: •Higher storm restoration expenses of $127 million, of which $122 million were deferred for future recovery; •Higher energy efficiency and other state mandated program costs of $20 million, which were deferred for future recovery, resulting in no material impact to earnings; and •Higher formula rate transmission operating and maintenance expenses of $11 million, which have no material impact to earnings.
JCP&L operating expenses: actual storm costs and regulatory deferrals · Filed 28/07/2026
During the first quarter of 2026, MP and PE incurred significant PJM charges during the Winter Storm Fern weather event totaling $145 million, which were deferred for future recovery as part of the ENEC.
West Virginia regulatory matters: storm-related PJM charges deferred for future recovery · Filed 28/07/2026
In January 2025, FirstEnergy executed a lift-out transaction with MetLife, that transferred approximately $640 million of plan assets and $652 million of plan obligations, associated with approximately 2,000 former competitive generation employees, who will assume future and full responsibility to fund and administer their benefit payments.
Pension matters: completed transfer of pension assets and obligations · Filed 18/02/2026
Global Holdings - On July 16, 2025, FEV sold its entire 33-1/3% equity ownership in Global Holding, the holding company for a joint venture in the Signal Peak mining and coal transportation operations, at book value to WMB Marketing Ventures, LLC and Pinesdale LLC for $47.5 million, which is classified in other within “Cash from Investing Activities” of FirstEnergy’s Consolidated Statements of Cash Flows.
Investment dispositions: completed mining investment sale at book value · Filed 18/02/2026
We deployed $5.6 billion in capital through our Energize365 program in 2025 to enhance reliability, resiliency and system capacity.
Shareholder letter: reported 2025 capital deployment · Filed 01/04/2026
These investments are driving measurable benefits, including a 10% improvement in systemwide distribution reliability compared to 2024.
Shareholder letter: reported distribution reliability improvement · Filed 01/04/2026
93 JCP&L Results of Operations — First Six Months of 2026 Compared with First Six Months of 2025 Net income increased $36 million in the first six months of 2026, as compared to the same period of 2025, primarily due to the absence in 2026 of severance and related costs that were recognized in the first quarter of 2025, true-up adjustments from the annual forward-looking transmission rate filing, lower other operating expenses, higher transmission revenues from regulated capital investments that increased rate base and increased customer demand.
JCP&L six-month results: earnings improvement and disclosed operating drivers · Filed 28/07/2026
2023-2025 LTIP Results KPI Measures Threshold Target Stretch Actual Results KPI Performance Payout Results Cumulative Mixed Operating/Core EPS (65%) $ 7.32 $ 7.76 n/a (capped at 100%) $ 7.74 97% Between Threshold and Target Relative TSR (35%) 25th percentile 50th percentile 85th percentile 34th percentile 52% Between Threshold and Target Based on the results of the two KPI measures, the Committee recommended, and independent members of the Board approved the payout at 81% of target payout opportunity for our participating NEOs.
Compensation discussion: actual 2023–2025 LTIP results and approved payout · Filed 01/04/2026
As noted above, on June 17, 2025, upon recommendation of the Committee, the Board approved a modification to the Operating EPS KPI, replacing it with the Core EPS KPI for the 2025 calendar year portion of the 2023-2025 (and 2024-2026) LTIP cycle.
Compensation discussion: approved modification of ongoing LTIP earnings metric · Filed 01/04/2026
Additionally, the Board approved limiting the maximum payout for the cumulative EPS component at 100% of target.
Compensation discussion: approved cap on cumulative EPS component payout · Filed 01/04/2026
▪ The Board’s three primary standing committees are comprised entirely of independent directors ▪ Independent directors regularly hold executive sessions without management at Board and committee meetings Board & Committee Oversight ▪ Your Board and Committees regularly review material risks facing your Company and, through the Audit Committee, oversee your Company’s enterprise risk management program and practices ▪ The Audit Committee also provides oversight of risks related to financial statements and financial controls, cybersecurity regulatory compliance, the Office of Ethics and Compliance and the Internal Audit function ▪ Through the Governance, Corporate Responsibility and Political Oversight Committee (the "Governance Committee"), your Board oversees corporate citizenship practices, including the Political and Lobbying Action Plan, Board governance and sustainability initiatives ▪ The Compensation Committee oversees the Company’s compensation philosophy, practices and human capital initiatives and focuses on alignment between pay and performance ▪ Operations and Safety Oversight Committee oversees operational strategy including reliability, safety, cybersecurity risks and audits, as well as environmental practices and policies Shareholder Rights & Accountability ▪ Annual election of all directors ▪ Clear, effective process for shareholders to raise concerns to your Board ▪ Majority voting standard for uncontested director elections, with an accompanying Director Resignation Policy ▪ General majority voting threshold to Amend Articles of Incorporation and Code of Regulations ▪ Direct investor relations and governance engagement and outreach to major shareholders ▪ Advisory vote to approve named executive officer compensation held on an annual basis, consistent with the shareholder advisory vote on frequency ▪ Shareholders may nominate directors through proxy access ▪ Shareholders of 20% or more shares outstanding and entitled to vote may call a special meeting ▪ No poison pill Board Practices ▪ The Board balances directors' skills, experiences and perspectives with a variety of characteristics, including gender, race and ethnicity, tenure and background ▪ Actively seek to include in the director nominee pool candidates of varied backgrounds, skills and experience ▪ A robust annual evaluation process, including full Board evaluation, Board committee evaluations and individual director evaluations ▪ Policy requiring directors who reach the age of 72 to tender their resignations to your Board to be effective upon acceptance by the Board ▪ Governance Committee and full Board engage in rigorous director succession planning ▪ Extensive director orientation and continuing education ▪ Robust stock ownership guidelines ▪ Anti-Hedging and Anti-Pledging Policies Our corporate governance practices are described in greater detail in the “Corporate Governance and Board of Directors Information” section beginning on page 9.
Corporate governance: independent committees, shareholder rights and board practices · Filed 01/04/2026
Non-management directors met, as annually required, as a group in executive session without the CEO or any other non-independent director or member of management at each of the regularly scheduled 2025 Board meetings.
Corporate governance: actual independent executive sessions during 2025 · Filed 01/04/2026
Pursuant to FirstEnergy’s obligations in Section 5(D) (“Transparency in Corporate Contributions”) of the Deferred Prosecution Agreement filed on July 22, 2021, in United States v.
Political contributions disclosure: obligations under deferred prosecution agreement · Filed 01/04/2026
Brian X. Tierney Board Chair, President and Chief Executive Officer FIRSTENERGY CORP.
Shareholder letter signature: combined board chair and chief executive roles · Filed 01/04/2026
